Ford and SK On end BlueOvalSK joint venture, split ownership of two plants

Ford and SK On are ending their BlueOvalSK battery factory joint venture; a Ford subsidiary will take full ownership of the Blue Oval City plant in Kentucky, and SK On will take full ownership of the plant in Tennessee.

The BlueOvalSK partnership was announced in 2021 as an $11.4 billion investment that was said to create 11,000 jobs and deliver 60 GWh of annual output from both plants. The change follows a wider shift in the US electric-vehicle market: EV subsidies have ended, automakers have scaled back EV-heavy product plans, and Ford notably throttled back its EV strategies in 2024.

Disappointing sales of the F-150 Lightning led Ford to postpone a fully electric replacement—originally planned for Tennessee—in favor of a smaller midsize electric truck due in 2027. According to Reuters, SK On decided to end the partnership because of declining prospects for EV sales in the US and intends to focus the Tennessee plant's output on the energy storage market.

Key Topics

Business, Ford, Sk On, Blueovalsk, Blue Oval City, Energy Storage